Ethics Level 3

Question 1

Confidential Valuation for Acquisition of a Purpose-Built Student Accommodation Asset

Answer 1

Gas Lane, Bristol (Confidential)

Question 2

Why did you maintain strict confientiality?

Answer 2

The RICS bye-laws state that ‘client confidentiality must be maintained for all client affairs’

RoC - Rule 3, 4 & 5

Question 3

How did you maintain strict confidentiality with the Gas Lane example?

Answer 3

• Confidential documents were clearly classified
• Strong passwords, and firewalls for confidential data
• Limited access to those only involved in the valuation

Question 4

Why is transactional data confidential?

Answer 4

1. Ensures they have a competitive advantage
2. Proprietary Information
   Pricing models and strategies often involve proprietary information, such as cost structures, profit margins, and pricing algorithms.
3. Negotiating leverage

Question 5

In the Gas Lane example how did you ensure everything remained classified?

Answer 5

1. Password protected files
2. Secure networks – VPN
3. Titled confidential
4. Limited access to files
5. Did not discuss to anyone not involved

Question 6

How was your example at Gas Lane in line with RoC?

Answer 6

Rule 3 – Service
I provided a quality of service to my client by keeping their information confidential

Rule 4 – Respect
I respected the confidential nature of my clients transactional data

Question 7

Quarterly Accounts Valuation of PBSA, Dublin

Answer 7

Montrose (Yield pressure)

Question 8

How did you act ethically in the Dublin example?

Answer 8

1. I did not secome to the pressure of my client
2. I acted with integrity, objectivity and independence.

Question 9

Were you competent to work in Dublin?

Question 10

How did you act in line with RoC for Dublin?

Answer 10

Rule 1 – Honesty and Integrity
I acted honestly and with integrity and adhered to my professional obligations as an RICS surveyor

Rule 3 – Service
I provided good quality service showing true valuations

Rule 5 – Responsibility
I acted responsibly without bribe, ensuring I maintained public confidence in the profession

Question 11

What other guidance were you following for Dublin example?

Answer 11

Red Book Global
PS 2 Ethics, competency, objectivity and disclosures
States:
‘must always act in a professional and ethical manner free from any undue influence, bias or conflict of interest.’

Question 12

What is PS2 of RICS Valuation - Global Standards (‘Red Book’) (2022)

Answer 12

Ethics, competency, objectivity and disclosures

Question 13

Co-living Valuation, Battersea

Answer 13

Folk - (Conflict management)

Question 14

How did you do a Conflict of Interest check?

Answer 14

1. Internal system dating back at least 10 years
2. Property address highlighted that it had been valued for another client

Question 15

What process did you undertake to manage the conflict?

Answer 15

1. Informed client of the conflict
2. They provided written consent
3. And signed ToE
4. Information barriers in place

Question 16

What type of conflict was Folk?

Answer 16

Party conflict

Question 17

How did you determine there was no conflict? (Folk)

Answer 17

1. CBRE had previously valued the site for Loan Security purposes
2. We do not consider it a CoI because…
   - It was for a different purpose
   - Different personnel working on the instruction
   We informed both parties who confirmed in writing they were happy for us to proceed

Question 18

What is an information barrier?

Answer 18

A safeguard designed to prevent the flow of confidential information between different departments or individuals within an organization.

Question 19

How did you incorporate an information barrier?

Answer 19

1. Robust enough to ensure no information passing
2. ‘reasonable steps’ to operate an effective barrier
3. Physical separation - different buildings or different floor
4. Virtual IT barrier
5. Clear audit trail of conflict check process and all communication

Question 20

How did you act honestly?

Answer 20

In line with Rule 1 of the Code of Conduct

Question 21

What specialist advice did you give on PBSA in Dublin?

Answer 21

• opinion of market rents
• advice on management fees
• advice on cladding

Question 22

Did you inspect the property?

Answer 22

I did not - we agreed in ToE that no material changes had occurred to the property